Intermediate Accounting With Air France

As per Note 24 of AFK company's financial statements and disclosure notes for the year ended December 31, 2013(Other financial assets?), the balance of investments accounted for at Fair Value through Profit and Loss (FVPL) was $951 million (including Cash secured? portion). This amount of $951 million is consolidated in the total of $1,031 million under other short-term financial assets? headings in the balance sheet.
As per Note 24 (Other financial assets?), 4.10.5 (Financial assets, cash and cash equivalents?), 4.23(Non-current assets held for sale and discontinued operations?), and in the balance sheet of AFK company for the year ended December 31, 2013 out of $951 million, $931 million was classified as current and $20 million was classified as noncurrent.
As per Note 34.3 (Market value of financial instruments?), the entire balance was stated at its fair value, this because the notes for marketable securities, investments, and other securities states that The market value of securities is determined based mainly on the market price or the prices available on other similar securities.? In practice the investments accounted for FVPL are reported at its fair value in the balance sheet.
As per Note 34.4 (Valuation methods for financial assets and liabilities at their fair value?), out of $951 million $31 million was estimated using level 1 inputs and balance $920 million was estimated using level 2 inputs. Even though level 2 fair value estimates are less reliable than level 1, but market-based inputs are better. Still this fair value estimate is less reliable in comparison to level 1 in the fair value hierarchy.
As per Note 24 of the disclosure notes of AFK company for the year ended December 31, 2013 (Other financial assets?), the balance of investments accounted for as available for sale was $1,135 million (including Shares secured? portion). This balance of $1,135 million is consolidated in the total of $1,963 million and reported as other financial assets? in the balance sheet.
As per Note 24 and the balance sheet the investment accounted for as available-for-sale, affiliate marketing and facebook ads the entire balance of $1,135 million was classified as noncurrent.
As per Note 34.3 (Market value of financial instruments?), the entire balance is reported at its fair value in the balance sheet, since the note states, Assets available for sale are recorded at their stock market value.? Besides it a common practice that investments accounted for as available-for-sale are reported at its fair value in the balance sheet.
As per Note 34.4 (Valuation methods for financial assets and liabilities at their fair value?), out of $1,135 million, $1,100 million was estimated using level 1 inputs while the balance $35 million was estimated using level 2 inputs. Since level 1 inputs fair value estimation is most reliable, this fair value estimate must be very reliable.
When the AFK Company could exercise significant influence over the investee, the company uses the equity method to account for the investment. When AFK Company could own more than 20% of the voting rights of the investee, the company could exercise significant influence.
When AFK Company exercises joint control over an investee, the company uses equity method to account for the joint ventures.
As per Note 22 (Equity affiliates?) and the balance sheet, the carrying value of the equity-method investment of AFK Company in its balance sheet for the year ended December 31, 2013 was $177 million.
As per Note 22 and the income statement, the net income from continuing operations of AFK Company for the year 2013 was reduced by 211 million by the equity-method investments.